Forfeiture of Contractor Fees's - Is it Legal

[deneway]

Hi,

I have a question about Agencies forfeiting Contractors pay.
My current Agency have sent out NEW T&C's there is a bullet point stating that if a contractor misses the deadline for submitting their signed timesheet, the agency MAY forfeit all payments for the hours worked in respect of the late/missed timesheet.

I have questioned the agency, there reply was if the timesheet misses the deadline, they (the agency) MAY not get paid for the contractor's work in respect of that particular timesheet from their client.

Irrespective of if the timesheet is late, I thought it was ILLEGAL to with hold payments for work already done.

If the agency did in fact carryout this procedure, would the contrctor have a right to sue the agency?

Any advice and comments most welcome


Thanks

[Not So Wise]

Simple answer: It does not matter if it is legal or not, you would be a fool to sign a contract with such a clause in it

Just as the agency would be a fool if they signed such a thing with client (which i doubt)

They could put something about payment would be delayed untill next payment period but forfeiture no way

[deneway]

Thanks,

I'm in the middle of this contract and they have issued NEW T&C's to all their contractors, not sure if I'm the only one kicking up a fuss.

But their contract with their client is nothing to do with my contract with them, I really couldn't care that much about their contract..

I thought I had heard somewhere that they couldn't by law with hold payment for work which had already been carried out, especially just for a timesheet being late..
Was looking to find some sort of legislation to throw at them, to make them re-word the T&C's.. I agree delay payment but forfeit.. that's a bit too much..

[Paddy]

Originally Posted by Not So Wise

Simple answer: It does not matter if it is legal or not, you would be a fool to sign a contract with such a clause in it

Just as the agency would be a fool if they signed such a thing with client (which i doubt)

They could put something about payment would be delayed untill next payment period but forfeiture no way

Don't sign it but in any event it is not enforceable even if signed.

Also don't opt out of the thingy whatsit legislation as this will make you case stronger.

[BolshieBastard]

I think Parity have just started putting this clause in their contracts.

As has been said, insist the clause is taken out and say you'll refuse the contract if necessary.

[pmeswani]

Originally Posted by BolshieBastard

I think Parity have just started putting this clause in their contracts.

As has been said, insist the clause is taken out and say you'll refuse the contract if necessary.

Maybe Parity are having some financial problems and looking for ways to get some extra cash before they may go under?

[NotAllThere]

Cross the clause out. Initial it. Sign the contract. Send it back.

You might want to make a copy, with a couple of witnesses before doing that.

[expat]

Wheeeee ...... clunk!


(sound of Parity landing in my Out basket)

[deneway]

Thanks for all the reply's, I'm still on probation so may take a while for this to appear.

I did reply earlier but hasn't got there yet, I'm in the middle of a contract so not quite sure if they can alter the T&C's of contract currently running?
sounds a bit iffy to me anyway..

Not Parity but Global T********* S******** (not sure if I'm allowed to name and shame, but you could probably work it out).

If anyone knows of any Legislation which would make them re-think their approach to late timesheets it would be much appreicated, by the way I haven't become a victim of these new T&C's (Yet..) but if for instance the contractor submits his/her timesheet for signature to the client and the client delays faxing the timesheet to the agency for whatever reason (Bank Holiday Weekend maybe..) then I can't see how the agency can try to penalise the contractor with the threat of non-payment for something which is out of his/her control.. If I do happen to fall foul of this clause before the contract ends (I will not be renewing with this agency) and they do try non-payment, I will try the small claims court, as I'm sure that will cost them more than what they hope to gain by non-payment.

Cheers...

[NickFitz]

Originally Posted by deneway

I did reply earlier but hasn't got there yet, I'm in the middle of a contract so not quite sure if they can alter the T&C's of contract currently running?
sounds a bit iffy to me anyway..

They can try, but you don't have to accept the alteration. If they do try, then you should inform the client that the agency are seeking to alter the terms of your contract in a way that is unacceptable and that, if they do so without your acceptance of such alteration (which you will not give), then you will have no alternative but to leave immediately.

You DO have to be ready to walk if push comes to shove, so suggesting to the client that you should devote your time to preparing a handover of your existing work in preparation for that moment will probably concentrate the client's mind wonderfully.

Remember, the agency is dependent on clients for their income, so they'll listen to them before they listen to you. Ensuring that the client is giving the agency grief (if only to protect their own interests, such as avoiding the costs involved in such a handover) is a powerful weapon.

Be aware that when confronted by the client, the agency will probably try to present the problem as being your intransigence, rather than their attempted imposition of wholly unreasonable alterations of terms. As your client is probably more concerned with their own bottom line than with ethical business practices, you should find a way of presenting the agency's behaviour to them as something that will cost them money - they will then seek to defend their own interests in a way that also protects you.

Your client's boot, applied to the agency's rear, probably has more clout than you do on your own.